12 Best Financial Sector Dividend Stocks To Buy Right Now

2. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 98

Bank of America Corporation (NYSE:BAC) is a North Carolina-based financial services company and investment bank. The company possesses several key strengths that reinforce its market position and provide a competitive edge against both traditional banks and fintech firms. Its extensive distribution network, which integrates a robust digital platform with a widespread branch presence, helps expand its low-cost deposit base and attract new customers, fueling revenue growth. In addition, its large scale supports efficient cost management, contributing to consistent profitability. The bank’s strong brand reputation further enhances its appeal to both existing and potential clients.

In the past year, Bank of America Corporation (NYSE:BAC) has delivered a nearly 38% return to shareholders. The company reported strong earnings in the fourth quarter of 2024, with revenues coming at $25.3 billion, an increase from $22 billion in the same period the previous year. Net income more than doubled to $6.7 billion, up from $3.1 billion a year earlier. The bank also expanded its customer base, adding 213,000 new consumer checking accounts, marking six straight years of quarterly growth. Moreover, it returned $2 billion to shareholders through dividend payments.

On January 29, Bank of America Corporation (NYSE:BAC) declared a quarterly dividend of $0.26 per share, which was in line with its previous dividend. The stock supports a dividend yield of 2.21%, as of February 16. It is one of the best dividend stocks on our list as the company has paid regular dividends to shareholders for 27 years in a row.